ORBCOMM Completes $45 Million Term Loan Financing with AIG for Growth
Capital

January 07, 2013 07:00 AM Eastern Standard Time

FORT LEE, N.J.--(BUSINESS WIRE)--ORBCOMM Inc. (Nasdaq: ORBC), a global satellite data communications
company specializing in two-way Machine-to-Machine (M2M) communications,
today announced that it completed a debt financing in the form of a
five-year term loan through a Senior Secured Note Agreement in the
principal amount of $45 million with AIG Asset Management (U.S.), LLC.
The five-year term loan has no required principal amortization and a
fixed interest rate of 9.5%, payable quarterly, for the life of the
loan. Subject to the terms set forth in the Note Agreement, the company
may prepay the Notes, in whole or in part, at any time prior to the
maturity date.

The company intends to use the proceeds of the AIG financing to
facilitate growth opportunities such as new services, product offerings,
geographic distribution and potential acquisitions into key vertical
markets. The proceeds will also provide a capital expenditure cushion.

"We are pleased to have additional financing available to pursue
strategic growth opportunities while at the same time preparing for the
launch of our next generation OG2 satellites,” said Marc Eisenberg,
Chief Executive Officer. “We plan to use the proceeds of this
transaction toward OG2-related growth opportunities, including enhanced
products and services. In addition, we will look at further acquisitions
within key vertical markets and geographies that will take advantage of
the advanced capabilities of our OG2 satellites.”

ORBCOMM anticipates launching the OG2 satellites as the primary mission
on two planned Falcon 9 launches, the first in mid-2013 and the second
in 2014. The OG2 constellation is specifically designed for ORBCOMM’s
customers in key vertical markets such as heavy equipment,
transportation, maritime, agriculture, oil & gas, energy & utilities,
and government. ORBCOMM’s customers will benefit from the faster
communications speeds, improved coverage, increases in allowable message
sizes, better power management, and other features that will increase
the markets they can serve, while continuing to support the efficient,
reliable mission-critical communications available today.

The company will use some of the proceeds to repay existing debt of $3.5
million incurred with the StarTrak acquisition. As part of the
Agreement, the company will terminate the existing $20 million credit
facility with its satellite vendor Sierra Nevada Corporation that was
available under the OG2 satellite development program, and can obtain
additional financing through a revolving working capital facility with
other lenders for up to $15 million in the form of inventory and
accounts receivable borrowing based loans.

ORBCOMM is a leading global satellite data communications company,
specializing in Machine-to-Machine (M2M) communications. Its customers
include Caterpillar Inc., Doosan Infracore America, Hitachi Construction
Machinery, and Hyundai Heavy Industries, Asset Intelligence (a
subsidiary of I.D. Systems, Inc.), Komatsu Ltd., Manitowoc Crane
Companies, Inc., and Volvo Construction Equipment among other industry
leaders. By means of a global network of low-earth orbit (LEO)
satellites and accompanying ground infrastructure, ORBCOMM’s low-cost
and reliable two-way data communication services track, monitor and
control mobile and fixed assets in our core markets: commercial
transportation; heavy equipment; industrial fixed assets; marine and
homeland security. ORBCOMM based products are installed on trucks,
containers, marine vessels, locomotives, backhoes, pipelines, oil wells,
utility meters, storage tanks and other assets. ORBCOMM is an innovator
and leading provider of solution services for the refrigerated and
transportation markets. Under its ReeferTrak,® GenTrak,TM
and CargoWatch TM brands, the Company provides customers with
the ability to proactively monitor, manage and remotely control their
refrigerated and transportation assets. Additionally, ORBCOMM provides
Automatic Identification System (AIS) data services for vessel tracking
and to improve maritime safety to government and commercial customers
worldwide. ORBCOMM is headquartered in Fort Lee, New Jersey and has its
network control center in Dulles, Virginia. For more information, visit www.orbcomm.com.

Forward-Looking Statements

Certain statements discussed in this press release constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
generally relate to ORBCOMM’s plans, objectives and expectations for
future events and include statements about ORBCOMM’s expectations,
beliefs, plans, objectives, intentions, assumptions and other statements
that are not historical facts. Such forward-looking statements,
including those concerning the ORBCOMM’s expectations, are subject to
known and unknown risks and uncertainties, which could cause actual
results to differ materially from the results, projected, expected or
implied by the forward-looking statements, some of which are beyond
ORBCOMM’s control, that may cause ORBCOMM’s actual results, performance
or achievements, or industry results, to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. In addition, specific consideration
should be given to various factors described in Part I, Item 1A. “Risk
Factors” and Part II, Item 7. “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” and elsewhere in
ORBCOMM’s Annual Report on Form 10-K for the year ended December 31,
2011, and other documents, on file with the Securities and Exchange
Commission. ORBCOMM undertakes no obligation to publicly revise any
forward-looking statements or cautionary factors, except as required by
law.